UK-Australia Free Trade Agreement

[edit] Introduction

The UK-Australia Free Trade Agreement (FTA) was signed in December 2021 by International Trade Secretary Anne-Marie Trevelyan and Australian Trade Minister Dan Tehan. It was hailed as the first post-Brexit deal negotiated from scratch by the UK government and not rolled over from trade terms that UK had enjoyed whilst in the EU.

International Trade Secretary Anne-Marie Trevelyan described the deal as a "landmark moment in the historic and vital relationship" between the UK and Australia.

The Department for International Trade estimated the deal would unlock £10.4bn of additional trade. In 2019-20, trade in goods and services between Australia and the UK was valued at £20.1bn, with both sides hoping to expand this amount considerably.

[edit] Key areas of the trade deal

The trade deal focusses on several key areas:

[edit] Tariff-free trade for British and Australian Goods

The deal removes tariffs on £4.3bn of exports, making it cheaper to sell UK products into Australia whilst making it cheaper to import Australian goods and services.

[edit] Access to procurement contracts for UK and Australian companies

British companies can bid for Australian government contracts and Australian companies can bid on UK public projects on an equal footing with UK business.

The agreement is the most substantial level of access Australia has granted in a free trade agreement, creating new opportunities for UK firms in sectors including transport, infrastructure, construction and financial services.

[edit] Easier access to UK and Australian markets for service industries

The UK exported £5.4 billion worth of services to Australia in 2020 accounting for 56 per cent of total exports to the country. The combined effect of the deal’s provisions allows UK and Australian service professionals access to each other’s markets and reduces barriers to investment.

[edit] Enhanced access for tech companies

The deal is designed to create opportunities for cutting-edge digital and tech sectors in industries of the future like AI, space exploration and low emissions technology.

The deal contains the world’s first-ever innovation chapter, which will facilitate the free flow of data, saving UK businesses from the cost of setting up servers in Australia, whilst maintaining personal data protection standards for British consumers.

[edit] Easier travel and work for young people

People under the age of 35 will be able to travel and work in both countries more freely. Highly skilled professionals will now be able to work in Australia temporarily and Aussie firms will no longer have to prioritise hiring Australian nationals first.

[edit] Greater opportunities for professionals

The deal will help facilitate the recognition of UK and Australian professional qualifications across many sectors, creating opportunities for professionals while allowing companies to attract and retain global talent.

[edit] Cooperation on shared challenges

The agreement includes provisions for the countries to collaborate on key challenges such as climate change and unfair trading practices.

[edit] Slashing red tape for entrepreneurs and small business

Red tape and bureaucracy has been reduced for small businesses across the UK and Australia that already export goods to the other market.

[edit] UK-Australia Free Trade Agreement and construction

The agreement opens the door for businesses to export construction products and specialist services between the two countries through reduced tariffs, red tape and access to public procurement processes on an equal footing.

One of the first companies to take advantage of this reduced friction is Marr Contracting, a global heavy lift tower crane specialist from Australia with expertise in cranage solutions for large-scale projects with complex requirements. Marr developed the world’s largest capacity luffing tower crane, the M2480D, and the free trade agreement has allowed Marr to set up a new UK-based division and bring more of their cranes onto UK projects.

In June 2024, Elisabeth Bowes PSM, Australian Deputy High Commissioner to the UK and Chief Negotiator of the UK-Australian FTA, visited the Lostock Sustainable Energy Plant (LSEP) in Northwich, Chesire, at the invitation of Marr Contracting.

[edit] Further information

• Follow this link to view the UK Government's Ten key Benefits of the UK-Australia Free Trade Agreement.
• More on Marr's Austrade visit in UK and Australia Trade Partnership Highlighted in Visit to Construction Site.

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